Strategic Management Accounting Practices and Shareholders Value Creation of Listed Deposit Money Banks in Nigeria

Abstract

Shareholders are primarily focused on maximizing the returns on their investments, which include both cash dividends and capital gains. Value maximization is a critical objective in any organization, typically achieved through strategic decisions made by the management. Return on investment represents the portion of a company's earnings distributed to its owners. To maximize these returns, organizations must enhance their performance, which can be achieved through strategic management accounting practices. These practices are crucial for achieving wealth and value maximization. This paper explores the impact of strategic management accounting practices on the creation of shareholder value. Primary data obtained through the administration of structured questionnaire were used for the analysis. Both the descriptive statistics and multiple linear regression were utilized for the analysis. The findings revealed that measures of strategic management accounting practices, such as strategic costing, strategic planning, management and performance measurement, strategic decision-making, competitor accounting, customer accounting, and strategic thinking, positively influence shareholder value creation. However, it was found that competitor accounting was the only practice with a significant impact. It is recommended that management of the banks adopt strategic practices that provide a competitive edge, ultimately enhancing shareholder value creation.